How Much Is The Realization Of Tax Revenue Until The Staples Want To Be Taxed? This Is The Answer

Illustration (Photo: Doc. Antara)

JAKARTA - The discourse of rolling out the levy of Value Added Tax (VAT) on basic necessities (sembako) which is now being widely discussed has generated its own polemic.

The reason is, if the agenda is rolled out by state officials, it is feared that it will reduce the level of household consumption which is currently under pressure due to the COVID-19 pandemic.

What is the government's planned VAT revenue target in the 2021 State Budget (APBN)?

Citing information reported by the Directorate General of Treasury of the Ministry of Finance (Kemenkeu), it is stated that the VAT ceiling in the 2021 APBN is IDR 518.5 trillion.

Meanwhile, the realization until April 2021 was recorded at IDR 137.5 or equivalent to 26.5 percent of this year's ceiling.

To note, this VAT is one of the domestic tax revenue instruments along with Income Tax (PPh), Land and Building Tax (PBB), excise, and other taxes.

Broadly speaking, the 2021 APBN targets state revenues of Rp.1,743.6 trillion.

This figure consists of tax revenues of Rp. 1,229.6 trillion, customs and excise of Rp. 215 trillion, Non-Tax State Revenues (PNBP) of Rp. 131.3 trillion, and grants of Rp. 900 billion.

According to the latest report as of April 2021, state revenues have touched IDR 585 trillion or 33.5 percent of the planned budget ceiling.

Meanwhile, this year's spending is projected to reach Rp2,750 trillion.

This means that in the 2021 State Budget there will be a budget deficit of IDR 1,006,4 trillion, equivalent to 5.7 percent of gross domestic product (GDP).

The difference in the amount is then covered by state officials by releasing financing (debt) through various financial instruments.